5 Stocks Rising on Unusual Volume - views

MADISON, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

From a technical perspective, XOOM ripped higher here right above some near-term support at $21 with above-average volume. This stock has been uptrending strong for the last month, moving higher from its low of $17.68 to its intraday high of $23.74. During that uptrend, shares of XOOM have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of XOOM within range of triggering a major breakout trade. That trade will hit if XOOM manages to take out some key overhead resistance levels at $24.60 to its all-time high at $26 with high volume.

Traders should now look for long-biased trades in XOOM as long as it's trending above $22 or $21 and then once it sustains a move or close above those breakout levels with volume that hits near or above 138,072 shares. If that breakout hits soon, then XOOM will set up to enter new all-time high territory above $26, which is bullish technical price action. Some possible upside targets off that breakout are $30 to $33.

Ruckus Wireless

Ruckus Wireless (RKUS) provides carrier-class Wi-Fi solutions to service providers and enterprises to solve network capacity and coverage challenges. This stock closed up 5.5% at $12.04 on Wednesday.

From a technical perspective, RKUS ripped higher here and broke out above some near-term overhead resistance at $11.76 with heavy upside volume. This move is quickly pushing shares of RKUS within range of triggering an even bigger breakout trade. That trade will hit if RKUS manages to take out some near-term overhead resistance levels at $12.19 to $12.78 with high volume.

Traders should now look for long-biased trades in RKUS as long as it's trending above $11 and then once it sustains a move or close above those breakout levels with volume that hits near or above 902,830 shares. If that breakout triggers soon, then RKUS will set up to re-test or possibly take out its next major overhead resistance levels at $14 to its 50-day moving average at $14.57. Any high-volume move above those levels will then give RKUS a chance to re-fill its previous gap down zone from May that started at $19.

Trex

Trex (TREX) is a manufacturer of wood-alternative decking, railing, fencing and trim products, which are marketed under the brand name Trex. This stock closed up 0.9% at $56.36 on Wednesday.

From a technical perspective, TREX rose modestly higher here right above some near-term support at $56 with above-average volume. This move briefly pushed shares of TREX into breakout territory, since the stock flirted with its previous double top resistance zone at $57.49 to $57.52. At last check, TREX hit an intraday high of $58.03 and volume was well above its three-month average action of 177,055 shares.

Traders should now look for long-biased trades in TREX as long as it's trending above some key near-term support levels at $56 or $54 and then once it sustains a move or close above Wednesday's high of $58.03 with volume that this near or above 177,055 shares. If we get that move soon, then TREX will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $60 to $65.

Solazyme

Solazyme (SZYM) is in the business of transforming a range of low-cost plant-based sugars into high-value oils. This stock closed up 4.9% at $12.64 on Wednesday.

Wednesady's Volume: 1.02 million

Average Volume: 591,684

Volume % Change: 66%

From a technical perspective, SZYM ripped higher here right off some near-term support at $12 with above-average volume. This move pushed shares of SZYM into breakout territory, since the stock closed above some key near-term overhead resistance levels at $12.12 to $12.45. This breakout could be signaling that shares of SZYM are preparing to trend notably higher from current levels.

Traders should now look for long-biased trades in SZYM as long as it's trending above $12 and then once it sustains a move or close above Wednesday's high of $12.89 with volume that's near or above 591,684 shares. If that breakout triggers soon, then SZYM will set up to re-test or possibly take out its next major overhead resistance levels at $13.50 to its 52-week high at $14.34. Any high-volume move above those levels will then put its next major overhead resistance levels at $16.31 to $18 into range for shares of SZYM.

Infoblox

Infoblox (BLOX) provides automated network control services and provides an appliance-based solution that enables dynamic networks and next-generation data centers. This stock closed up 4.4% to $29.20 on Wednesady.

Wednesday's Volume: 1.49 million

Average Volume: 638,805

Volume % Change: 117%

From a technical perspective, BLOX ripped sharply higher here right off some near-term support at $28 with above-average volume. This stock has been uptrending strong for the last two months, with shares soaring higher from its low of $20.16 to its intraday and new all-time high of $29.58. During that uptrend, shares of BLOX have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of BLOX into breakout territory above some near-term overhead resistance at $28.06.

Traders should now look for long-biased trades in BLOX as long as it's trending above $28 and then once it sustains a move or close above Wednesday's high of $29.58 with volume that hits near or above 638,805 shares. If we get that move soon, then BLOX will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $35 to $37.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Madison, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.